According to flash data, the French economy contracted by 0.1% quarter-on-quarter in Q4 2024, falling short of market expectations for no growth and reversing from a 0.4% expansion in Q3.
French economy contracts 0.1% in Q4 2024
This marks the first quarterly decline since Q1 2022, attributed to political challenges and the waning impact of the Summer Olympics.
Fixed investment remained weak, edging down by 0.1% compared to a 0.3% decline in Q3. Construction investment fell more sharply, while investment in manufactured goods and market services increased. Household consumption also slowed to 0.4% from 0.6%, driven by weaker service spending. Government spending eased slightly to 0.4% from 0.5%.
Net trade continued to weigh on GDP, contributing -0.2 percentage points, slightly worsening from -0.1 percentage points in Q3. Exports fell by 0.2%, an improvement from the 0.8% decline in Q3, while imports rebounded with a 0.4% increase, reversing a 0.4% drop in the previous quarter. Changes in inventories also contributed negatively, subtracting 0.1 percentage points from GDP, compared to a 0.2 percentage point contribution in Q3.
French economy grows 0.7% YoY, slows from Q3
The French economy grew by 0.7% year over year, a slowdown from the 1.2% growth in Q3. This marked the weakest pace since Q4 2020 when the economy contracted. France's GDP increased by 1.1% for the entire year, matching the growth rate in 2023.
